Gate.io, the global cryptocurrency exchange, announced the launch of Gate.io Fraction Token, making the “most popular” NFTs more accessible and available on the market.
Fraction Token on Gate.io allows traders “to buy and sell ERC-20 tokens pegged to an underlying NFT asset, enabling traders to better access and trade NFTs from the most popular collections.” Users are able to buy and sell Faction Tokens on Gate.io’s spot trading market, greatly “improving the liquidity of the NFT market.”
The first release at launch is the CryptoPunks collection, “created by Lava Labs, which has become one of the most iconic collections in the NFT space.” On Gate.io, the collection “will be tradable as a fractional token under the IPUNKS symbol and paired with USDT.”
Gate.io‘s Fraction Tokens are “tradable in the same manner as assets on the spot market, with the ability to place buy and sell orders of various quantities, significantly reducing the capital needed to invest in high-value collections and enabling a much more liquid NFT market.”
For example, IPUNKS tokens are “tradeable ERC-20 tokens, each equivalent to 1/10,000 share of a specific NFT from the CryptoPunks collection in the Gate NFT library.”
Furthermore, NFT ownership is “obtainable with fraction tokens as they are tradable at a fixed rate with Fractional NFTs on Gate.io, which are assets that provide the holder with a share of ownership of an underlying NFT asset proportional to the number of fractions held.”
So traders can “obtain shares of a high-value NFT at a lower cost by acquiring either Fraction Tokens or Fractional NFTs themselves.”
Aside from reducing the entry price for popular NFTs, Gate.io makes it “easier to manage trading NFTs on the market by streamlining the process to resemble spot trading.” In addition, users “benefit from the high liquidity found on Gate.io’s markets and the free transfer between NFT faction tokens and fractional NFTs.”
Dr. Lin Han, Founder and CEO of Gate.io, said:
“As one of the first exchanges to fully support fractional NFTs, we continue to upgrade our trading products to provide users with diversified NFT investment opportunities. With this new launch, any NFT enthusiast, regardless of portfolio size, can easily enter the market and become a collector or trader of high-value NFTs.”
Established in 2013, Gate.io claims it is “one of the world’s earliest cryptocurrency exchanges and a leader among digital asset platforms.”
Gate.io offers services “related to the trading of multiple leading digital assets, and it has grown to serve over 10 million users around the world.”
Besides the main exchange, Gate.io also “offers other services such as decentralized finance, research, and analytics, venture capital investing, wallet services, labs, and more.”